Bitcoin ETF prospects stoke GameFi enthusiasm, says Animoca ... - Investing.com UK

Investing.com | Editor Hari G

Published Nov 06, 2023 12:18

Yat Siu, the founder of Animoca Brands, has linked the recent surge in Bitcoin prices and the potential introduction of a Bitcoin exchange-traded fund (ETF) to renewed interest in GameFi, as he spoke at Hong Kong Fintech Week. Siu underscored that token values are about more than just financial gain, but also serve as a symbol of ‘user and utility’ confidence.

Siu argued that observing on-chain activity is a better measure of investor confidence in GameFi than merely tracking a project’s token price. For this, he cited increased transaction activity and trading volume for Axie Infinity, Animoca’s leading blockchain-based game.

The founder of Animoca Brands emphasized the central role Bitcoin plays in the ‘gold standard financial ecosystem’, where it acts as the ‘reserve currency of Web3’. This significantly adds to the overall value of the crypto ecosystem. Siu expressed positivity about a potential Bitcoin ETF legitimizing the sector and drawing investment from traditional financial institutions.

Siu also projected that the crypto sector would eventually evolve beyond its dependence on Bitcoin, similar to how economies transitioned away from the gold standard. Despite Web3’s $1 trillion valuation, Siu pointed out that it only involves a small fraction of the global population. He attributed this to a lack of ‘market maturity’ and a need for diverse ‘economic inputs’.

In conclusion, Siu’s comments highlighted the impact of Bitcoin’s market value inflation on blockchain games and the potential influence of a Bitcoin ETF on investor confidence in the Web3.0 gaming market. He emphasized that token values not only serve as financial assets but also as trust builders for users, thereby extending their utility beyond mere financial profit.

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